Who's refinancing their mortgage?

[IBuyUFO]

IndyMac sucks! I paid $390 to lock in the rate at 4.785% with half a point and then they send out a flyer dated Dec. 29. I tried to take advantage of the interest rates in the flyer of 4.500% (4.641% APR) & 4.625% (4.706% APR) which were guaranteed to current customers but they keep saying that these rates were from Dec. 18th and that rate changes everyday so you can't have it at that rate. In the back of the flyer it says "Special pricing is guaranteed by calling this toll free number only" so what's the deal? It's shady what they're trying to do. They bring in customers with that rate and then they tell them nope can't have it at that rate but you can have it at today's rate. I'm going to take my business elsewhere and lose the $390 plus the appraisal fee.
The appraisel can be used at another bank right?

 

[Homerboy]

Any idea if I can get a better rate on my HELC that I have?
My credit does kinda blow right now though

 

[grohl]

Just saw this thread.

Was at 6.25 on a 30 year, locked in at 4.875 no points, closing in a few weeks.

 

[mrrman]

just refinaced last week and got 4.62% ...combined to mortgages together, dropped payments to 2800 p/m from 4800 p/m, wiped out all debt and put $5k into my account, the bank also absorbed 70% of all fees/penalties...2009 has been good so far

 

[BlahBlahYouToo]

Originally posted by: mrrman
just refinaced last week and got 4.62% ...combined to mortgages together, dropped payments to 2800 p/m from 4800 p/m, wiped out all debt and put $5k into my account, the bank also absorbed 70% of all fees/penalties...2009 has been good so far

wait, you were able to consolidate 2 properties/mortgages together?

 

[Xavier434]

Just in case you guys are curious (didn't read entire thread thoroughly) as a first time home buyer with a credit score between 750-800 I can get a 30 year fixed FHA loan at a 4.75% interest rate for 3.5% down payment. The closing costs are huge though if I go that route. I can also get the same thing but for 5% interest and the closing costs are much more reasonable.

 

[richardycc]

Originally posted by: grohl
Just saw this thread.

Was at 6.25 on a 30 year, locked in at 4.875 no points, closing in a few weeks.

what's your closing cost...I got the same rate,but paying 0.5 points, and my closing cost is roughly $2500. Sometimes lender will give you no points, but nickel and dime you on everything. it all even out at the end. I can write off my points, can one write off the fees from closing?

 

[LordSnailz]

Originally posted by: richardycc

Originally posted by: grohl
Just saw this thread.

Was at 6.25 on a 30 year, locked in at 4.875 no points, closing in a few weeks.

what's your closing cost...I got the same rate,but paying 0.5 points, and my closing cost is roughly $2500. Sometimes lender will give you no points, but nickel and dime you on everything. it all even out at the end. I can write off my points, can one write off the fees from closing?

Actually how does that work, I read a lot of how lenders would sometimes roll-up the hidden costs into the loan and that there is no such thing as no point/no cost to refinance.
If I have $500k left of my current loan and I refi for a lower rate, my new loan will be for the amount of $500k at the whatever lower rate they give me right? Where will the discrepancy come from? The monthly payments?

If that's the case, I can always through the new numbers in $500k at new interest rate and look at what monthly payment is and whether it matches what my lender is quoting me right? What other ways can the lender hide the extra cost/fees?

 

[Shortcut]

Someone should correct me if I'm wrong, but I don't believe the lender rolls in their fees into the loan itself. If you want to borrow $500k, and your fees are $5k, they can only loan you $500k.

With no-point, no cost loans, the lender can make their money by offering you a mediocre interest rate.

 

[spacejamz]

Originally posted by: Shortcut
Someone should correct me if I'm wrong, but I don't believe the lender rolls in their fees into the loan itself. If you want to borrow $500k, and your fees are $5k, they can only loan you $500k.

With no-point, no cost loans, the lender can make their money by offering you a mediocre interest rate.

it varies by lending institution...my credit union rolled all of the fees into the new loan for me (about $3K) - 20 year note at 4.5%.

 

[OCGuy]

Originally posted by: Shortcut
Someone should correct me if I'm wrong, but I don't believe the lender rolls in their fees into the loan itself. If you want to borrow $500k, and your fees are $5k, they can only loan you $500k.

With no-point, no cost loans, the lender can make their money by offering you a mediocre interest rate.

Part true, part not. If you dont want to pay any "fees", they raise your rate and pay the fees with the kickbacks they get for the higher rate.

You can raise your loan amount to cover costs (usually 1-3% of the loan amount), or you can keep your loan amount the same and bring in more money to escrow (closing attorney in some states).

 

[mrrman]

Originally posted by: BlahBlahYouToo

Originally posted by: mrrman
just refinaced last week and got 4.62% ...combined to mortgages together, dropped payments to 2800 p/m from 4800 p/m, wiped out all debt and put $5k into my account, the bank also absorbed 70% of all fees/penalties...2009 has been good so far

wait, you were able to consolidate 2 properties/mortgages together?

yes

 

[Shortcut]

ah, good to know! i stand corrected.

 

[LordSnailz]

Originally posted by: Ocguy31

Originally posted by: Shortcut
Someone should correct me if I'm wrong, but I don't believe the lender rolls in their fees into the loan itself. If you want to borrow $500k, and your fees are $5k, they can only loan you $500k.

With no-point, no cost loans, the lender can make their money by offering you a mediocre interest rate.

Part true, part not. If you dont want to pay any "fees", they raise your rate and pay the fees with the kickbacks they get for the higher rate.

You can raise your loan amount to cover costs (usually 1-3% of the loan amount), or you can keep your loan amount the same and bring in more money to escrow (closing attorney in some states).

In that case, how are there some places that are offering no points, no cost refinancing options with very attractive rates?

 

[BlahBlahYouToo]

Originally posted by: mrrman

Originally posted by: BlahBlahYouToo

Originally posted by: mrrman
just refinaced last week and got 4.62% ...combined to mortgages together, dropped payments to 2800 p/m from 4800 p/m, wiped out all debt and put $5k into my account, the bank also absorbed 70% of all fees/penalties...2009 has been good so far

wait, you were able to consolidate 2 properties/mortgages together?

yes

what bank?
did you get a discount on closing costs?

 

[mrrman]

It was a Credit Union...Westminster Saving CC...there were some fees however 70% were paid by the bank...I just paid $100 for the paperwork...I was able to get a great deal because I had my broker on one line and the banker on the other...I was dictating everything that my broker told me to the banker...I could have gotten 4% if I moved all my accounts elsewhere but it wasnt worth it to me

 

[richardycc]

closed this refi today, 'closing cost' was a lot higher than I orginally anticipated due to the fact that I didn't pay my Jan mortgage because of this refi, so they are charging me interest dated back to 12/1/08 to 1/16/09, 46 days of interest at $42+/day, almost $2000 to paidoff the old mortgage. Since my state has 3days cancellation/change mind period, so the lawyer won't pay off the first mortgage until the 16th, so I have to pay 3 days of interest for that. I also had to pay 18days of interest on the new mortgage. my first payment is 3/1/09, and I probably won't pay until 3/15, so I am mortgage free for the next 60days or so.

and they required me to pay my quarterly property tax that is due in Feb and another 3months worth of property tax into the escrow account, around $900 each, ~$1800 total. Other than these unexpected items, my costing cost was close to my orginal $2500 amount.

After this, I don't see how anyone can do no closing cost refi with the new mortgage amount = the orginal mortgage, its close to impossible,unless you can find a bank willing to give up all these profits.

One will have to pay their last orginal mortgage on the 1st, and close their refi that same day just to avoid any additional interest, but they will now have to pay 30days worth of interest on the new mortgage, you just can't win. well, I guess one can pay the old mortgage on the 30th, and close the refi on the 30th, that might be able to avoid all these upfront interest, but now the first payment is due in 30-45days vs 45-75days.

 

[spacejamz]

just closed on my refi today...as stated earlier, 20 year fixed at 4.5%...even the closing guy was impressed with our new loan...

i plan on making my previous payment amount of $1100/month (new monthly is $862), so the loan should be payoff in about 15 years and I would save about $18K in interest...

 

[SirChadwick]

Would any of you suggest that I refi right now? I just bought a 170k home 6 months (30 yr fixed) ago at 6.25%. We only put 3% down on it though so I'm not sure we're eligible.

Any help would be appreciated. We all love to save $ during times like this.

 

[Capt Caveman]

Originally posted by: SirChadwick
Would any of you suggest that I refi right now? I just bought a 170k home 6 months (30 yr fixed) ago at 6.25%. We only put 3% down on it though so I'm not sure we're eligible.

Any help would be appreciated. We all love to save $ during times like this.

Yes, you can drop over a full point. Check with your current mortgage company as they may be able to waive a large amount of the closing costs.

I'm refinancing now and I bought last April.

 

[SirChadwick]

Originally posted by: Capt Caveman

Originally posted by: SirChadwick
Would any of you suggest that I refi right now? I just bought a 170k home 6 months (30 yr fixed) ago at 6.25%. We only put 3% down on it though so I'm not sure we're eligible.

Any help would be appreciated. We all love to save $ during times like this.

Yes, you can drop over a full point. Check with your current mortgage company as they may be able to waive a large amount of the closing costs.

I'm refinancing now and I bought last April.

Current Mortage company. I originally financed through Brand Mortgage. But they sold the loan to CITI. So contact Citi? Don't all companies sell your loan sooner or later? Sorry for being such a noob to this.

 

[sdifox]

I am on variable so my current rate is 2.25% but then my mortgage is down to about 40k so it is not a big deal what interest rate is.

 

[Capt Caveman]

Originally posted by: SirChadwick

Originally posted by: Capt Caveman

Originally posted by: SirChadwick
Would any of you suggest that I refi right now? I just bought a 170k home 6 months (30 yr fixed) ago at 6.25%. We only put 3% down on it though so I'm not sure we're eligible.

Any help would be appreciated. We all love to save $ during times like this.

Yes, you can drop over a full point. Check with your current mortgage company as they may be able to waive a large amount of the closing costs.

I'm refinancing now and I bought last April.

Current Mortage company. I originally financed through Brand Mortgage. But they sold the loan to CITI. So contact Citi? Don't all companies sell your loan sooner or later? Sorry for being such a noob to this.

Yes, contact Citi first. And yes, most companies sell their mortgages eventually.

 

[alkemyst]

To refi a mortgage you cannot be upside down. If you are refinancing less than 80% of the value of the appraisal you will be fine....more you will need PMI and possibily money down.

A lot have contacted us not understanding this.

 

[kthroyer]

Originally posted by: alkemyst
To refi a mortgage you cannot be upside down. If you are refinancing less than 80% of the value of the appraisal you will be fine....more you will need PMI and possibily money down.

A lot have contacted us not understanding this.

Hey alkemyst,

Sounds like you are in the mortgage business. Could you answer a quick question for me?

My home's value right now is about $220,000 (conservatively) The mortgage principal is at $160000 at 6%, but I have a home equity loan also with a balance of $30,000. If I just wanted to refi the mortgage, and continue paying off the HE Loan, do you feel that I would still need to pay PMI or put money down?

I know the two loans together are more than 80% of the home's value, but the $160,000 is around 72%.

Also my credit score is over 800.

Thanks.